Accounting Chapter 2 for Final

Businesses use accounts to summarize all the information pertaining to a single item

• False
• True

A drawing account is decreased by debits and increased by credits

• True
• False

A list of accounts used by a business is a chart of accounts

• True
• False

Accounts payable accounts are increased with a debit

• True
• False

Accounts receivable accounts are increased with a debit

• true
• false

An amount recorded on the left side of a T account is a credit

• true
• false

Asset accounts increase on the credit side

• true
• false

Before a transaction is recorded in the records of a business, it is analyzed to determine which accounts are changed and how. 

• true
• false

Cash is an asset account with a normal credit balance. 

• true
• false

Common accounting practice is to record withdrawals as debits directly in the owner's drawing account.

• true

• false